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Escarpment Magaz ine Summer 2012
CANADIAN HOME PRICE GAINS AND SALES
ARE EXPECTED TO MODERATE
but there are a
few hot spots where prices are being fueled by strong
market fundamentals. Toronto ranks among the tightest
housing market in Canadian housing and has somewhat
skewed the national statistics. But housing markets differ
across Canada and housing is local. Other than the
frenzy in Toronto which is showing early signs of moder-
ating, the market is entrenched in a balanced market. All
indicators are pointing towards stable, healthy growth
and a move towards typical levels of activity. Buyers have
been spurred on by the positive affordability picture
brought about by low mortgage rates. A number of inter-
esting perceptions come from Re/Max and Royal LeP-
age. “While the ranks of the rich expand in both
population and wealth, their impact on the Canadian res-
idential landscape is undeniable,” says Michael Polzler,
RE/MAX Ontario-Atlantic Canada. A further view is that
Canadians recognize and appreciate the stability of real
estate. Housing has emerged as a blue-chip asset.
Housing has outperformed just about every other asset
class! Buyers have been attracted to the market by the
historically low mortgage rates and sellers have brought
listing inventory to market earlier than normal. “The ex-
pected continuation of low interest rates will keep hous-
ing markets stable and home ownership affordable and
within reach for many buyers in the month ahead,” said
Canadian Real Estate Association president Wayne
Moen. “Price appreciation and strong unit sales reflect
Canadians taking advantage of borrowing rates that for
the first time fell below 3 per cent for a five year fixed
mortgage,” commented Royal LePage’s Phil Soper, “and
a banking environment that the Royal Bank of Canada
referred to as ‘hyper-competitive’.”
Across the country, consumers are buying into what they
believe is a good investment market. Despite global
economic uncertainty and a sputtering economic recov-
ery south of the border, the Canadian real estate market
remains for the most part remarkably stable and resilient,
and the Georgian Triangle is no exception. First time buy-
ers are driving demand in turn sparking strong sales ac-
tivity among move-up purchasers. “The pace for interest
rate increases next year is expected to be very slow and
gradual” commented CREA’s chief economist Gregory
Klump, “so combined with further job growth, Canada’s
housing market should remain resilient.”
Internet search by buyers and sellers continue to keep
pace with the significant increases in social media net-
working. Realtor.ca the public MLS website saw a 26%
increase in traffic between the first quarter of 2011 and
first quarter of 2011 with 6,150,787 hits!
Georgian Triangle real estate is well suited for people
who enjoy an active lifestyle. And recreational properties
are an excellent way to bring families together and offset
the stresses associated with city living.
In case there was any doubt, the MLS numbers released
confirm that the Georgian Triangle property market just
keeps rolling along, marking the ninth consecutive month
in which the latest month's performance exceeded that of
the same month last year. Year-to-date, GTAR reports that
811 properties changed hands. That is a 16.7 % in-
crease over the 695 sales recorded for the area in the
same period last year. Dollar volume figures improved
by a somewhat smaller amount, an 11% increase on a
year to date basis. [$233,913,117 in 2012 versus
$210,483,659 in 2011] To some extent, this reflects the
particular breakdown in sales across price ranges. High-
end sales were scarce in May with no sales recorded
over the $800,000 mark, and only one sale above
$700,000.'Whether this is a reflection of investors being
somewhat cautious in the luxury market given interna-
tional economic storm clouds or whether it is simply a mo-
mentary pause remains to be seen. New listings are also
up by 9% YTD over last year [3113 in 2012 versus
2864 in 2011] with 730 new properties coming onto the
market in May compared to 701 last year. Inventory is
up both over last month as well as last year.
At the end of May GTAR reported 2590 active listings in
the MLS@ system compared to 2320 in April, and 2458
in May of last year. Despite the robust and sustainable
real estate market in the Georgian Triangle, one trend is
noteworthy, and that is the trajectory for average sales
price. Average prices have actually dipped recently com-
pared to those recorded last year. At the end of May the
average sales price of properties in the Georgian Trian-
gle year to date came in at $310,320, 5% lower than
the $327,315 recorded last year at this time. This is fur-
ther confirmation that the Georgian Triangle is not one of
those "overheated" markets characterized as being in
bubble territory but rather is a balanced one, providing
ongoing opportunities for buyers to take advantage of
the real value that the area continues to offer.
BY
A
NTHEA
W
HITE
GEORGIAN TRIANGLE REAL ESTATE MARKET UPDATES
escarpment
real estate
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